What is unclear that plusnet are advertising 24/7 uk support on their products page which is linked from their t&c's?
The product web page has two functions.
Firstly, the web page is an advertisement inducing people to enter into a contract with Plusnet. In a legal sense, as is usual for an advert, the web page is likely to be what is known as an "invitation to treat" - an inducement to enter into a contract.
Secondly, the product web page is incorporated by reference into the terms of the contract. As I have already explained, there is uncertainty as to how much of the web page is incorporated.
Two key requirements for the creation of a contract are offer and acceptance. An offer must be made with the intention to be bound by its terms on acceptance by the other party. The acceptance must be unconditional.
When Plusnet display the web page to a visitor, they do not appear to be making an offer in the contractual sense. Plusnet have no idea when displaying the web page whether it is technically feasible to provide the desired service to the potential customer's premises. It is this potential impossibility of providing the advertised service that indicates the web page is an invitation to treat, not an offer.
The most likely scenario is:
- product web page - invitation to treat
- customer order - offer based on Plusnet's standard terms
- Plusnet confirmation - unconditional acceptance of the customer's offer, which is the point the contract between Plusnet and the customer comes into being
There are other possibilities, but we will stick with that one, as it will not help our understanding to get bogged down with discussion of multiple invitations to treat and the circumstances in which a contractual offer can be accepted by a party's silence.
Nothing in any invitation to treat is binding unless the terms in question appear in the offer.
An item appearing on a shop shelf with a price next to it is probably the most famous modern example of an invitation to treat. The offer is made when the customer takes the item to the till and offers the amount displayed on the shelf in payment. The shop assistant can accept the customer's offer, but is not bound to do so - they can reject the offer and possibly make a counter-offer to the customer ("The price is actually £x. Do you accept?"). The customer cannot insist on purchasing the item at the displayed price, as they are not entitled to rely on the invitation to treat - it is merely an indication of the terms that might be acceptable to the shop.
A shop deliberately displaying false prices is likely to commit an offence under
The Consumer Protection from Unfair Trading Regulations 2008 (SI 2008/1277). This regulatory requirement sits apart from the contractual position - any offences under CPUTR 2008 do not directly change the contractual position, though the facts behind the CPUTR 2008 convictions might indicate that consumer contracts formed as a result of unfair trading practices are partly or wholly defeated by the Unfair Terms in Consumer Contracts Regulations 1999 or the law on misrepresentation in contract.
The distinction between the contractual and regulatory position is something I will return to shortly. Meanwhile, Plusnet might want to acquaint themselves with CPUTR 2008 regulation 5, specifically regulation 5(5)(g). As an advertisement, the web page is also subject to the regulations on advertising standards, and it is an open question whether Plusnet are in compliance with these regulations bearing in mind their intention to withdraw the advertised 24/7 helpdesk support for residential customers.
you also forget legislation always trumps contracts when the two conflict. ofcom legislation does not allow isp's to change contracts at their own discretion without informing customers and offering them an opt-out.
The starting point is that the regulatory position does not change the contractual position at all, as with my example of the shop displaying false prices. If the shop is successfully prosecuted under CPUTR 2008, this conviction will not force the shop to sell the product at the false low price. However, there are some circumstances in which the regulatory position might affect the contractual position.
If Ofcom ruled that the change to helpdesk hours is material detriment that should give consumers the right to penalty free termination under the clause required to be inserted into end-use contracts via the Communications Act 2003 and General Condition 9, this seems likely to give rise to a right of termination for the affected consumers. I'm fairly certain that this right to termination would arise under UTCCR 1999, on the basis that the term holding the customer to the minimum contract period is unfair considering that Plusnet have not fulfilled a regulatory obligation (it appears to fall within UTCCR 1999 schedule 2 paragraph 1(o) - a term is unfair when it "[obliges] the consumer to fulfil all his obligations where the seller or supplier does not perform his"). If I'm wrong that a right to terminate would arise under UTCCR 1999, it would probably arise in equity, though I'm not going to the possible equitable routes to a remedy.
If Plusnet were convicted of an offence under CPUTR 2008 in relation to advertising a 24/7 helpdesk when there is no intention to continue providing it, that might also be
prima facie evidence of UTCCR 1999 unfairness affecting terms in the contracts of those signing up to Plusnet now that the change to helpdesk hours has been announced. I don't propose to explore the precise effects of UTCCR 1999 in this scenario any further.
The point I'm trying to draw out is that it is too simplistic to say statutory regulation trumps contract law. Failure to meet a regulatory obligation might provide evidence that a contractual remedy exists for some or all customers, but the contractual position must be resolved under contract law and possibly equity. You cannot assume that contracts that are affected by regulatory non-compliance automatically become voidable.